Second round of small business PPP loans available
NORFOLK, Virginia – More small business help coming soon. The latest COVID-19 relief bill passed by Congress provides for funding for a second round of the paycheck protection program.
The PPP grants low-interest loans to eligible small businesses, which can be granted if certain criteria are met.
There are 284 billion US dollars available for this round. Companies that received money in the first round may be able to get another loan if they have been hit particularly hard.
There are a few requirements, but one of the most important is that they have decreased by 25% in each quarter of 2020 compared to the same quarter of 2019.
Another difference to the program this time is that the expenses eligible for cover have been expanded to include health insurance paid for by the employer, business disruptions due to unrest and expenses caused by pandemics.
That means “all personal equipment like the plexiglass partitions, things like that, personal protective equipment,” said John Asbury, CEO of Atlantic Union Bank.
It also extends the authorization. In this round, 501 (c) (6) organizations, including organizations such as chambers of commerce, can apply. Hotels and restaurants can also receive additional benefits.
“If you’re in the hospitality or hospitality industry, you can now borrow three and a half months of your average monthly paycheck,” Asbury said. “Otherwise it will be two and a half months, which means that more money will be available for the severely affected gastronomy.”
It’s still unclear when applications can be submitted, but Asbury says it could be around January 13th.
Companies have until March 31st to apply.
Check with your bank to see if they accept applications.
You can learn more about the process at Atlantic Union Bank by contacting click here.